This module allows you to analyze existing cross correlation between Kraken Ethereum USD and Poloniex Ethereum USD. You can compare the effects of market volatilities on Kraken Ethereum and Poloniex Ethereum and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Kraken Ethereum with a short position of Poloniex Ethereum. See also your portfolio center. Please also check ongoing floating volatility patterns of Kraken Ethereum and Poloniex Ethereum.

Kraken

Poloniex

Ethereum on Poloniex in USD

705

86.43

13.97%

Market Cap: 389.3 M

Performance (%)

Timeline

Pair Volatility

Assuming 30 trading days horizon, Kraken Ethereum USD is expected to generate 1.02 times more return on investment than Poloniex Ethereum. However, Kraken Ethereum is 1.02 times more volatile than Poloniex Ethereum USD. It trades about 0.39 of its potential returns per unit of risk. Poloniex Ethereum USD is currently generating about 0.39 per unit of risk. If you would invest 31,637 in Kraken Ethereum USD on November 13, 2017 and sell it today you would earn a total of 37,463 from holding Kraken Ethereum USD or generate 118.42% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Kraken Ethereum and Poloniex Ethereum

0.98

Parameters

Diversification

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding Kraken Ethereum USD and Poloniex Ethereum USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Poloniex Ethereum USD and Kraken Ethereum is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Kraken Ethereum USD are associated (or correlated) with Poloniex Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poloniex Ethereum USD has no effect on the direction of Kraken Ethereum i.e. Kraken Ethereum and Poloniex Ethereum go up and down completely randomly.